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Residential property construction in meltdown

Cyprus Statistical Services figures published earlier today reveal that the number of residential properties for which building permits have been issued has dropped by more than 4,000 compared to last year.

DURING August, building permits were authorised for the construction of 403 residential properties in Cyprus compared with the 797 in August 2010; a drop of 49.4%.

Of those 403 residential properties, 217 were single houses and 186 were multiple housing units such as apartments and other residential complexes.

So far this year, building permits have been issued for the construction of 6,145 residential properties against 10,270 during the same period last year; a drop of 4,125.

Cyprus residential property statistics August 2011

Source: Cyprus Statistical Service

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the Island’s construction sector.

Readers' comments

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  • @Mike – thanks for your comments.

    Unfortunately, the statistics provided by the Land Registry provide insufficient information to produce a detailed analysis of property sales. For example:

    We do not know how many of the contracts deposited are for residential properties – apartments and houses. And we do not know how many are for the purchase of new and how many for the purchase of resale property.

    All we have is a single figure that includes everything; sales of new residential, resale residential, land, commercial and office.

    From the reports I have seen, the ‘top end’ of the market is doing well in most countries. But as you say, the ‘top end’ in Cyprus leaves many things to be desired.

  • Mike says:

    Hector

    People generally considering purchasing additional properties overseas are, in the main, recession proof to a large degree. I think we all agree with the rest of your comment but North Europeans are still buying overseas just not in Cyprus at the moment for the reasons you describe.

    Far too many have discounted Cyprus in favour of France and Spain. The Spanish market has to all intents and purposes reached equilibrium in it’s pricing structure having lost in some cases up to 70% in values ending up where prices are once again encouraging sales. Cyprus, often a first choice of destination, is too often overlooked in favour of more realistic destinations. After all asking €650,000 for a mediocre, poorly designed, jerry built, concrete monstrosity on just a few square metres of ground overlooked by all and sundry is not any sane persons idea of a good deal. Couple that to no title then one could be forgiven for assuming that only a raving lunatic would even consider the choice as an option. Sadly for them it would appear there are numbers of them, according to sales figures, still walking amongst us.

  • Pete says:

    Perhaps they will catch up on the backlog of outstanding Title deeds now they don’t have so many new builds! But I doubt it somehow.

  • Hector says:

    ‘It’s the recession stupid!’ could be one reasonable explanation. I would add that the deplorable legal system, third world system & protectionist rules on granting title deeds and lack of legal safeguards for anyone buying a property, whether in north or south Cyprus, may just have something to do with it.

  • dimitri says:

    Good, there is an oversupply already, we need more trees not more concrete.

  • Cyprus Lover says:

    Do the people in charge in Cyprus not read the negative reports in the media? It would appear not because they seem to be carrying on as if all is well in the world and are completely mystified as to why no one wants to buy in Cyprus.

    If only they would “bite the bullet” and fix the issues and people would flock back.

  • James JH Lockhart says:

    Will the Penny drop with the Cypriot Authorities ?

  • Costas Apacket says:

    Still too many, especially if residential properties being built as a result of the permits are being sold to unsuspecting foreigners.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

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